Balfour Beatty acquires segments of Rok's business
19 November 2010
Acquisition enhances Mansell’s position in the new build affordable housing market and expands its construction capabilities in airports
Balfour Beatty, the international infrastructure group, announces today that it has acquired certain segments of Rok’s business in affordable housing and general construction for a consideration of £7 million, of which £4 million has been paid in cash. The balance of £3 million will be paid as contracts transfer. We expect these operations to add approximately £100 million p.a. to the Group's revenue.
The acquired segments and 381 employees therein will be integrated into Mansell, our regional construction business. Rok’s operations in affordable housing, which are principally in the South West and North West of the UK, will support Mansell’s strategy of being a leading provider in affordable housing where long-term demographics are favourable. Rok’s general construction activities will enhance Mansell’s existing capabilities at Heathrow and Gatwick airports as well as expanding its geographical presence into the South Midlands. We are working with Rok’s administrator towards an efficient transition of these operations to minimise disruption to clients and to protect jobs in the operations we are acquiring.
Balfour Beatty Chief Executive Ian Tyler, said:
“The strategic fit between the operations of Rok and Mansell, reinforced by the quality of the Rok management team and staff, presents a big opportunity for us to develop our UK regional business on attractive terms to our shareholders.”
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This document contains forward looking statements which have been made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated.
Notes to Editors:
- Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail).
The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs 50,000 people around the world.
- Mansell is a construction services business of Balfour Beatty plc with around 2,000 employees across the UK.
Mansell has a long-term sustainable customer base in both the public and private sectors and operates in markets ranging from affordable housing, senior living, education, health, defence, airports, rail and commercial, to culture and heritage.
Projects range from smaller refurbishment projects to multi-million pound developments and the business has a presence on a large number of framework contracts.